Ladies and gentlemen, thank you for standing by. And welcome to the Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions). And also as a reminder, today's teleconference is being recorded. And at this time I will turn the conference call over to our host Chairman and CEO Mr. Craig Blunden. Please go ahead, sir.

Thank you. Good morning, everyone. This is Craig Blunden, Chairman and CEO of Provident Financial Holdings and on the call with me is Donavon Ternes, our President, Chief Operating and Chief Financial Officer. Before we begin, I have a brief administrative items to address. Our presentation today discusses the company's business outlook and will include forward-looking statements. Those statements include descriptions of management's plans, objectives or goals for future operations, products or services, forecast of financial or other performance measures and statements about the company's general outlook for economic and business conditions. We also may make forward-looking statements during the question-and-answer period following management's presentation. These forward-looking statements are subject to a number of risks and uncertainties and actual results may differ materially from those discussed today. Information on the risk factors that could cause actual results to differ from any forward-looking statement is available from the earnings release that was distributed on July 30th, from the annual report on Form 10-K for the year ended June 30, 2013, and from the Form 10-Qs that are filed subsequent to the Form 10-K. Forward-looking statements are effective only as of the date they are made and the Company assumes no obligation to update this information. To begin with thank you for participating in our call. I hope that each of you has had an opportunity to review our earnings release, which describes our fourth quarter results. First, I would like to point out the increased importance place in our community banking business. We will note that we have been more success on originating loans held for investment during the fiscal year than we were during the same period last. We have essentially doubled our origination volume and doing so as a result of four consecutive quarters of growth in loans held…

Thank you very much. (Operator Instructions). Question will come from Brian Zabora with KBW. Please go ahead.

Thanks. Good morning.

Good morning, Brian.

Good morning.

My question on lock pipeline. Is the mix still about the same or is about 40% or so refi and 60% purchase?

The pipeline has changed in July from June 30, it's closer to 50-50 mix today. Refinance activity has bumped up a bit prior to the last couple of days, because interest rates have going down. For most of July the tenure was below the 2.50% handle which had reduced mortgage rates and that bumped up refi activity a bit.

Okay. Just a follow up on that do you think your pretty strong refinance activity is purely rate driven or is it also a function of properties values here you come up and that or you see these are the place for people can refi and therefore maybe refi won’t be as rate sensitive going forward. Does that makes sense?

I think overtime, I think you are right both of those make sense. I think initially it’s the drop in interest rate that gets people interested and then they also realized that their property values are up as well. So moving forward I think both of those will operate.

And then just lastly commercial real estate you talked about the increase in originations, balances were down a bit in the quarter did you had a large pay down or anything unusual that results in decrease?

Yes I think in our earnings release we described above 48 million of pay downs as I recall the number and indeed that was up a bit in comparison to any other prior quarter the last three quarters. That was number four full fiscal, full four quarters this fiscal.

Thanks for taking my questions.

Thank you.

Thank you very much. Our next question in queue that will come from the line of Jason Stewart with Compass Point. Please go ahead.

Thanks good morning.

Good morning.

There has been a lot written about strength at the higher end of the (inaudible) market in terms of price point. I realize California NGO footprint is probably shifted earlier to that price point, but could you just talk about your plans or updated thoughts on originating those for sale whether you are seeing more demand from investors if there is a program that you could come up with to leverage your platform on that jumbo product.

Well, actually we have a couple of things going on in that regard. The first thing we do have a portfolio jumbo program now that the mortgage division has been originating into seriously, I suppose for the last two or three months. But secondarily, we are see investor interest in that space and we have recently executed a couple of new investor agreements with a couple of investors that are specifically targeting that space. And as a result we believe we are going to be more competitive in that jumbo production space. And more competitive relative to the large banks that are actually portfolioing the product and actually charging lower rates than confirming loan rates. And it’s primarily in our view hybrid arm driven at least with respect to our portfolio; with respect to the investor activity, it can be both fixed and hybrid arm driven.

Okay. And do you have any sense for how big that could get or could you give us an idea of how much has been in the last couple of months in the portfolio program coming on balance sheet?

Well, for the June quarter. We originated $13 million of SFR from the mortgage division into the portfolio programs. But that’s in combination of confirming jumbo, in fact I think there is a couple of construction loans in that loan total as well. So that's the color that I could give you with respect to our own portfolio program. We believe that that will accelerate as we go through the timeline in fiscal ‘15. And with respect to the newer investment program we have there is really to new the rate we’ve just essentially gotten on board with those investors within the last month or so. But the program is very competitive relative to what we’re seeing in the market from the larger lenders there putting it into their portfolio.

Okay, thanks. And could you just give us an update on incremental loan yields for some of the major categories that you’re originating for the balance sheet?

Sure. The single-family product that’s coming into the balance sheet is in the low 3s primarily. The second trust deed program that we have single-family that’s coming into the balance sheet is in the low 5s. Multi-family right now is in the high to low 3s, I am sorry high 3s to low 4s. And then CRE coming into the portfolio is in the mid 4s.

Great. Thanks for taking the questions.

Thank you. (Operator Instructions). Next in queue is Tim O’Brien with Sandler O’Neil & Partners. Please go ahead. Tim O’Brien - Sandler O’Neil & Partners: Good morning.

Good morning. Tim O’Brien - Sandler O’Neil & Partners: So one question that I have for you is as far as structure of those loans that you’re willing to portfolio, can you give a little bit of color on how far out you’ve gone the fixed rate component of loans that you keep on the books?

With respect to the single family product that’s coming in the portfolio, it's primarily 5/1 ARM product. It's a Second Trust Deed program, it could be 10 year fixed, fully amortizing, could be 15 year fixed amortizing. With respect to the construction loans, there is a construction to term program where they move into confirming loan product with a 30 year amortization, 30 year term. Multifamily is primarily 5/1 ARM product with 30 year fully amortizing terms. And then CRE product is primarily 25 year amortizing but 10 year balloons in that product. Tim O’Brien - Sandler O’Neil & Partners: And then changing gears but kind of moving further with Brian's question. As far as the pay downs, the 48 million in pay downs that you experienced this quarter, can you give a -- can you comment on why pay downs came in higher this quarter relative -- characterize relative to other pay down results in the past couple of quarters and what might have happened, is it were the higher pay downs reflective of more aggressive activity from competitors or was it part and parcel due to general rate environment and lower rates in general or give some color on that.

I think it's probably all of the above. If I look at our principal repayments on the quarterly basis, 46, 47, 48 million in the fourth quarter, the third quarter was 25 million, second quarter was 35 million, first quarter was 41.7 million. I don't know that there is any line or reason with respect to that. I don't breakdown the mix between single-family and multi-family, I probably do in the K, or the upcoming K, but I don't have that today. But at the end of the day, when we look at what occurred in the June quarter with interest rates coming down, I think there was probably an uptake in single-family payoffs. And then secondarily, I think there is more activity in multi-family, in commercial real estate with respect to refinance activity. Tim O’Brien - Sandler O’Neil & Partners: Thanks for that color. And then last question, with the new fiscal year starting, can you give some comments on your outlook as far as funding needs and pricing and funding availability that as you move through the year? What your thoughts there?

The first thing I want to say about beginning the fiscal, the new fiscal year, at July 1st, I would argue that we're in a much better position today than we were a year ago at this time with respect to our mortgage banking business, because we essentially took three quarters of fiscal ‘14 right rightsizing that business and getting it to a point of a return to profitability from those higher loan levels, the prior year. So we're relatively comfortable where we are today with respect to that business and with respect to the origination volume that appears to be out there given the current environment. And so, I think number one that's a large positive. Now… Tim O’Brien - Sandler O’Neil & Partners: Is that the same, Donavon, that your expectations that the funding requirements forward to drive that business, to support that business or have moderated from -- they must have given where we were last year and what was happening in the market last year. But looking at 2015 relative to where you were in 2014, the needs there going to be more modest?

Yes, I would expect absolutely as it relates to fiscal ‘13 which is a record volume year for us. Fiscal ‘14, we came up -- we did $3.5 billion in fiscal ‘13, we did $2 billion in mortgage in fiscal ‘14. That $2 billion number doesn’t seem out of the question with respect to fiscal ‘15, given what we just did in the June quarter and given that the current environment seems to have stabilized. That being said, we certainly have the liquidity in place to manage that business. The larger context that I think you’re trying to hit to, as we grow balance sheet, what are the levers that we’re going to pull with respect to growing either deposits or where else are we going to get funding. Well, as we think about growing balance sheet, one of the primary considerations is interest rate risk management. We are down to $41 million of FHLB advances today. FHLB advances are tremendous tool with respect to interest rate risk management. And we have a great deal of availability on our lines with the Federal Home Loan Bank in San Francisco as we look down the fiscal and levering up the balance sheet. Secondarily, I think deposit rates may become more competitive. We've kind of been stuck at the very lows of the deposit rate range for two years is it, for an extended period of time they can't go any lower and I think that's going to be dictated by what the Fed may or may not do or the FOMC may or may not do with respect to increase in the Fed funds rate and when that may actually occur. There been a great deal written recently about banks having absorbed a great deal of additional liquidity as a result of monitory policy coming out of the Fed. I suspect that some of that is probably true. I don't know that it's true with respect to our deposits, I think it's probably more centered in money centered banks and Wall Street banks. And they may have some issues with respect to deposit. But at the end of the day, I think it's got to get more competitive its interest rates rise. And that will ultimately become problematic with respect to at least on a short-term basis, net interest margin. Depending upon how quickly those rates rise in contrast to what our assets reprice to. Tim O’Brien - Sandler O’Neil & Partners: Thanks a lot of Donavon.

Thank you. (Operator Instructions). And next in queue is Brett Villaume with FIG Partners. Please go ahead.

Good morning gentlemen.

Hi.

Good morning.

On the comment you had recovery this quarter, but this was your sixth consecutive quarter of reserve to capital or negative provision for loan losses. And you don’t think you are down for 1 for reserve ratio against the loan sale for investment 1.25%. Do you have any guidance for us on what should expect for provision, so we’re kind of a level is normalized level for reserves I guess loans held for investments?

Yes. I think at the end of the day as we think about a normalized level I think last quarter we described that the range is 100 basis points to 125 basis points, I think that’s still probably the range relative to our current composition and relative to our current mix. But we’ve also described for instance that we’re interested in growing construction lending for instance. Construction lending will probably take a larger allowance because it’s a riskier product and so if those balances grow that’s going to change the loan composition in such a way that perhaps the allowance doesn’t have much room to fall. On the flip side if single-family or multi-family come in, in a big way and start taking a larger composition of the total portfolio those are probably lower reserve levels which may allow for that 125 to move down a bit. But anyway you slice it, we’re at the top end of what we think is a normalized range of 1 to 125 so there is no longer a lot of room with respect to recovered from the allowance.

Okay. That’s very helpful. Thank you. And then my other question I wanted to ask was about you mentioned that you would hire 15 people in originations and then 1 additional person so 15 people hired, that was during the quarter up until June 30th correct?

Yes.

And can you share with us if you have continued to do so or since then over the last month or were those (inaudible) towards the latter half of the quarter?

I can't recall when they came in, in particular but if you look at our investor presentation and you look at the number of retail branches we've described on that page and you compare to March, you will see that I think we consolidated a couple of offices and then we opened a new office as well. And the new hires were primarily related to that new office that we picked up and they were transitioned by another large lender to us. And with respect to current color we just don't provide current color.

Okay. Thank you very much.

Thank you.

Thank you. At this time we have no additional questions in queue. Please continue.

Right I believe that we want to thank you all participating. Look forward to talking to you again at our next quarter earnings conference call. Thank you.

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